Affected users are advised to manually download a rollback patch KB5063878, as the faulty update causes failures when attempting to reset the PC, fix problems via Windows Update, or perform RemoteWipe.

Microsoft is rolling out an emergency fix via an out-of-band update, planned to be released before the next Patch Tuesday on September 9, 2025, with further details to be shared once available.

Microsoft has acknowledged a critical issue affecting reset and recovery operations on some Windows versions following recent updates, which may cause these features to fail.

The problem is linked to update KB5063875, installed after August security updates, and is associated with error code 0x80240069, impacting Windows 11 24H2 and certain enterprise environments.

The issue primarily impacts Windows 11 versions 23H2 and 22H2, Windows 10 22H2, and several LTSC editions, while Windows 11 24H2 remains unaffected.

Despite the fix, users encountering the error are advised to retry their upgrade, as ongoing issues with the update process persist.

Microsoft has identified the root cause of the error, which previously affected thousands in April 2025, and is testing a future patch to fully resolve the problem.

This situation highlights the ongoing challenges with Windows update reliability, especially as Microsoft emphasizes that the bug underscores the risks associated with routine updates, even security ones.

Microsoft also addressed other update-related bugs, including issues with Windows Server Update Services, network share installations, and errors during upgrades from older Windows versions.

The company warns that the failure could impact millions, as the update does not notify users of reset failures, risking data loss and system recovery problems.

Further details will be shared once the emergency patch is rolled out, and Microsoft continues to develop fixes to ensure update stability.

This latest issue adds to recent update failures, including SSD corruption and other errors experienced in August, emphasizing the need for cautious update management.